Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects.
If your loved one left you an inheritance after passing on, you might already be planning how you will spend the money. Your plans may come to a screeching halt, though, when you realize that probate is going to take longer than you expected.
If you’d rather not wait for ages, consider probate loans. In this guide from our probate advance service, you’ll learn how probate loans work and what you can use your funding for.
What Is a Probate Loan?
Probate loans are similar to other types of loans in that you’re borrowing money you’ll have to repay. The main difference between this and other types of funding is that you’re borrowing against your expected inheritance amount.
Some people refer to probate loans as probate advances, but they’re not the same thing. An inheritance advance is a cash advance on your inheritance, as the name implies. Instead of requiring you to make monthly payments, the funding company takes a lump-sum payment from the inheritance.
Let’s go over the key differences between a probate advance vs. probate loan. Probate loans:
- Require regular payments
- Accrue interest
- May require loan underwriting fees
- Require a credit check
Probate advances:
- Require one lump-sum payment
- Accrue no interest
- Do not require a credit check
What Can You Use a Probate Loan For?
Because a probate loan is an advance on your inheritance, there aren’t any stipulations on how you can use the funds. Here are some examples of what you can use your funding for.
- Estate Financing: The probate process and managing a loved one’s estate isn’t cheap. If you’re the estate administrator, you might have to pay off creditors, prepare the deceased’s house for sale, keep their assets in good condition, and much more. Probate loans give you some financial breathing room while you tend to your loved one’s final affairs.
- Medical Expenses: If you’re like millions of Americans, you have nagging medical debt that could very well take you a lifetime to pay off. Or perhaps your doctor has recommended an experimental treatment that might save your life, but insurance won’t cover it.
- Daily Living Expenses: Even if you have a steady job, paying for necessities such as groceries, rent, and utilities can feel like an uphill climb. A probate loan can make it easier for you to afford your family’s daily must-haves.
- Higher Education Expenses: Have you been accepted into your dream university but can’t afford the sky-high tuition? By applying for a probate loan, you don’t have to let this incredible opportunity slip through your fingers.
- Paying Off Debt: Credit card debt can quickly escalate out of control, but taking out a probate loan on your inheritance can be your saving grace. You can also use your inheritance money to pay down that student loan debt that’s followed you since graduation.
- Large Purchases: Maybe you’ve always wanted to buy a house, start a business, or splurge on that bucket-list vacation. With a probate loan, you can afford those big purchases you’ve been dreaming of.
Probate loans are perfect for situations like these. You can use your loan to cover out-of-pocket expenses and pay off those bills that have haunted your mailbox for what seems like an eternity.
How Much Can You Borrow?
Probate lending companies may give you 25% to 75% of your inheritance with a probate loan. Some probate loan companies have a maximum amount you can borrow, such as $50,000 to $100,000.
Who Should Consider Using Probate Loans?
Probate loans aren’t right for everyone. You should consider taking out a probate loan if:
- You have immediate financial needs. For example, if you need to pay your mortgage, replace your car, or pay for out-of-pocket medical expenses, you might be a good candidate for a probate loan.
- You think your inheritance may be disputed. If you believe a relative might contest your loved one’s will, working with a probate lender is a good idea. Your lender is vested in ensuring you end up with your original inheritance.
- You think probate will take a long time and can’t wait on your inheritance. It’s common for probate to stall because of family disagreements, such as what grandma “really meant” when she wrote her will. If you can’t afford to wait for months, consider a probate loan to tide you over.
Choosing a Probate Lender
Probate lenders can vary significantly when it comes to the amount you can borrow, funding speed, and loan repayment terms. When shopping around for a probate lender, consider:
- The maximum amount the lender will give you
- How fast the lender can provide you with a loan
- The loan interest rate and other fees
- Repayment terms
- The lender’s reputation
- Heir qualification requirements
You want to choose a lender that will make the funding process as quick and easy as possible, such as Rockpoint Probate Funding. Here’s how our process works:
- Complete a quick application to tell us more about your inheritance. If you have questions about the application process, you can call us 24/7.
- We’ll review your application and discuss the terms of your funding.
- If we approve you, we will send the funds to you quickly, usually within 24 hours.
Trust Rockpoint Probate Funding When You Need Your Inheritance Now
Want to learn more about probate loans or how probate advances work? Are you ready to start the probate funding application process today? Reach out to Rockpoint Probate Funding 24/7 at (888) 263-8588.
